$ETH has just broken a 6-week downward trend against $BTC. Is this the shape of things to come for $ETH?
Subdued price action
2023 was a fairly subdued year for ethereum as far as price action goes. Where bitcoin has put on a gain of 161% this year to date, ethereum has lagged behind with only 103%. Those holding $BTC instead of $ETH would be more than a third better off with their gains for the year.
Be that as it may, ethereum’s lagging rise in value may have been more to do with the fact that the most used blockchain has been in a long period of transition since moving from the proof-of-work to the proof-of-stake consensus mechanism. The fact that this largely happened with barely a hitch has contributed to ethereum developers and its community maintaining faith in the network’s long-term viability.
$ETH break out
As 2023 draws to a close, it appears that the $ETH price is at long last moving out of its slumberous attitude over the most part of the year.
Source: Trading View
The ascending triangle within which $ETH had traversed since June of 2022 was finally broken out of in late November this year, and now looks to be well and truly in the rear view mirror.
The price is currently battling with the strong resistance at $2,400. $3,000 and then $3,500 await above should $ETH be able to break through.
Source: Trading View
Zooming in on the short 4-hour time frame, it can be seen that $ETH is respecting the upward trend line, and has broken through the local resistance, having come back to confirm it before presumably moving onwards and upwards.
Is $ETH finally turning the corner?
Source: Trading View
Nonetheless, it’s on the short time frame against $BTC where $ETH is signalling that it just might have turned the corner. Having been dominated by $BTC for most of the year, $ETH has to start showing that it is turning the tide.
As can be seen in the chart above, $ETH is certainly doing this. Granted that this is on a micro scale, and a far more substantial trend needs to take shape first, $ETH has to begin somewhere, and it could be here.
A huge brick wall
Source: Trading View
To give some idea of the enormity of the brick wall facing $ETH right now as it looks to continue its upward move against $BTC, looking down on the price action on the weekly time frame allows us to see this perspective.
$ETH not only needs to break back above the upward trend line (black), but also needs to pierce through the huge resistance (blue). If it manages to do this, and does not get rejected, there is plenty of blue sky above, and this move could really stimulate the rest of the altcoins. An altcoin season could then be well and truly in force.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/12/ethereum-turns-the-corner-against-bitcoin-is-this-the-beginning-of-the-eth-run